Brain drain: The impact of air pollution on firm performance

Xue, Shuyu; Zhang, Bohui; Zhao, Xiaofeng

doi:10.1016/j.jeem.2021.102546

Cited by 116 publications

(56 citation statements)

References 45 publications

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“…According to the World Health Organization (WHO), air pollution kills over 7 million people per year, and nearly 90% of the world's population breathes polluted air [1]. It was also revealed that the worst levels of air quality, particularly in developing countries, have an impact on human capital accumulation and company performance [62]. This is due to the fact that those who are skilled and qualified but sensitive to low air quality may flee the impacted locations to enjoy greater wages and a better quality of life.…”

Section: The Relationship Between the Inclusion Of Natural Capital In...mentioning

confidence: 99%

Environmental Economics and the SDGs: A Review of Their Relationships and Barriers

et al. 2022

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Recently, environmental issues have increased, whereas the Earth’s natural resources have deteriorated. These problems have forced people and companies to engage in environmental economics to achieve sustainability. However, several barriers have been identified in the implementation of environmental economics. This literature review provides insights into environmental economics and the sustainable development goals (SDGs), as well as the correlation between these two subjects in general. Thus, information about potential barriers to the implementation of environmental economics and possible solutions will be presented. A total of 75 documents were analyzed, including articles, books, official reports, or paperwork from governments and/or related institutions. This study is beneficial, especially for developing countries that are just preparing for, or in the process of conducting, the initial implementation of environmental economics, as well as achieving the sustainable development goals. Interdisciplinary topics that integrate human aspects with environmental economics are limited yet crucial for future research.

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Section: The Relationship Between the Inclusion Of Natural Capital In...mentioning

confidence: 99%

Environmental Economics and the SDGs: A Review of Their Relationships and Barriers

et al. 2022

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“…Individuals facing high levels of pollution may choose to work near home to reduce exposure and mitigate the impact. Although some empirical evidence confirms that households choose locations to seek a better environmental quality (i.e., sorting, migration) [ 15 , 25 , 26 , 27 , 28 , 29 , 30 , 31 ], migration is a long-term choice of a family and limited by many socio-economic factors (e.g., housing prices and health care). We argue that working near home may be a more common choice to avoid pollution than migration, especially due to China’s generally high house prices and hukou restrictions.…”

Section: Introductionmentioning

confidence: 99%

Air Pollution and Workplace Choice: Evidence from China

Lin

Qian

Wang

et al. 2022

IJERPH

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Understanding the impacts of air pollution on public health and individual behavior is crucial for optimal environmental policy design. Using 2015 census microdata in China, this paper examined the causal effect of air pollution on working place choice. The research design relies on a regression discontinuity design based on China’s Huai River Policy. The discontinuity in air pollution caused by the Huai River Policy provides a natural experiment to estimate the impact of air pollution. The results show that air pollution significantly increases the possibility of individuals working near home. The positive effect of air pollution on working near home is more significant for women, the elderly, urban individuals and those individuals working in secondary and tertiary industries. This study improves our understanding of the health effects and avoidance behavior associated with environmental hazards, discusses the negative impact of air pollution on labor mobility and mismatch by making individuals work nearby, and emphasizes that strengthening air pollution control should be a long-term policy.

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“…This line of emerging research has focused on various attributes of the firm headquarter cities. For example, researchers have shown that local firm investment behavior (Zhao et al, 2017), local stock demand relative to supply (Dong et al, 2020), high-speed rail connections (Autore et al, 2021) and air pollution (Xue et al, 2021), among others, help to explain local firms' market valuations in China. The thrust of these findings is that improving local environments that enhance local firm productivity or investor demand for local stocks are associated with higher market valuations of local firms.…”

Section: Introductionmentioning

confidence: 99%

“…, 2020), high-speed rail connections (Autore et al. , 2021) and air pollution (Xue et al. , 2021), among others, help to explain local firms' market valuations in China.…”

Section: Introductionmentioning

confidence: 99%

Urban vibrancy, human capital and firm valuation in China

Jiang

Shuying

et al. 2022

CFRI

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PurposeThis paper intends to study how geographic heterogeneity in urban vibrancy, especially in human capital creation, helps explain persist firm valuation dispersion across cities in China.Design/methodology/approachThis paper studies geographic differences in firm valuations of 1,023 listed companies headquartered in 35 major cities in China from 2001 to 2018. The authors estimate panel regressions of local firm Tobin's q on city fixed effects or city endowed attributes in human capital creation after controlling industry-year fixed effects as well as a set of firm and city time variant attributes.FindingsThe results show persistent, significant city-to-city differences in Tobin's q, especially among large, mature or high labor-intensive firms. To explain such geographic differences in firm valuations, the authors identify several factors of the endowed city competitive advantages in creating human capital that play important roles in explaining the persistent geographic firm valuation premia.Originality/valueThis paper provides the first systematic analysis of urban vibrancy in human capital supply in explaining persistent geographic firm valuation dispersion in China. The evidence suggests that city endowed comparative advantages in supplying human capital have created long-lasting, and growing, shareholder wealth by attracting and retaining talents and human resources in local firms.

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Brain drain: The impact of air pollution on firm performance

Cited by 116 publications

References 45 publications

Environmental Economics and the SDGs: A Review of Their Relationships and Barriers

Environmental Economics and the SDGs: A Review of Their Relationships and Barriers

Air Pollution and Workplace Choice: Evidence from China

Urban vibrancy, human capital and firm valuation in China

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